If a Retailer Orders a Quantity of Merchandise to Be

question 2

Multiple Choice

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) price.

• A) F.O.B. destination
• B) F.O.B. origin pricing
• C) transfer
• D) postage-stamp
• E) base-point

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Definitions:

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Consumer Sovereignty

The principle that the consumer's preferences determine the production of goods and services within an economy.

Market System

An economic system where decisions regarding investment, production, and distribution are guided by the forces of supply and demand and prices mediate transactions.

Production Decisions

The process of determining what goods or services to produce, how much, and by what method.